Performance pay, test scores, and student learning objectives

•We analyze the test scores of students enrolled in schools participating in a pay for performance program.•We investigate the relationship between student learning objectives and teacher performance.•Participating in a pay for performance program is associated with increased test score gains in the initial year of implementation.•We do not find any additional student test score growth in the second year of implementation.•Student learning objectives are not significantly correlated with teacher performance.

Austin Independent School District's (AISD) REACH pay for performance program has become a national model for compensation reform. This study analyzes the test scores of students enrolled in schools participating in the REACH program to students enrolled in schools within AISD not participating in the program. We also investigate the relationship between student learning objectives (SLOs), the program's primary measure of individual teacher performance, and teacher performance as measured by value-added student test scores. The AISD REACH program is associated with positive student test score gains in both math and reading during the initial year of implementation. Student test score gains are maintained in the second year, but we do not find any additional growth. We also find that SLOs are not significantly correlated with a teacher's value-added student test scores.